The Bank of Japan (BoJ) released its interest rate decision on Friday. The BoJ kept its monetary policy unchanged (interest rate: 0.00-0.10%, monetary base target: 275 trillion yen). The central bank will expand its monetary base at an annual pace of 80 trillion yen. This decision was expected by analysts.
The central bank voted 8-1 to keep its monetary policy unchanged. The BoJ board member, Takahide Kiuchi, said again that the central bank should cut its asset purchases to 45 trillion yen annually.
The BoJ noted that the country's economy continued to recover moderately. It pointed out that household spending and housing investment were showing signs of improvement.
Private consumption was resilient, the central bank said.
Inflation expectations are expected to rise.